What is the definition of 'Competing Business' in the Bigfoot Forestry agreement?

According to Bigfoot Forestry's 2025 Franchise Disclosure Document, a 'Competing Business' is defined with specific criteria related to forestry mulching services. A business is considered a 'Competing Business' if it meets at least one of the following conditions: derives, or is reasonably expected to derive, at least 51% of its total gross sales from the sale of forestry mulching services; solicits, offers, or sells franchises or licenses for a business that meets the 51% gross sales criteria; or services, trains, supports, consults with, advises, or otherwise assists any person with respect to the development, management, and/or operation of a business that meets the 51% gross sales criteria.

This definition is important for prospective franchisees as it outlines the types of businesses that could be considered competitive to a Bigfoot Forestry franchise. Understanding this definition is crucial for franchisees to avoid engaging in activities that could be seen as a conflict of interest or a breach of the franchise agreement. For example, a franchisee is generally prohibited from owning or operating a 'Competing Business' during the term of their franchise agreement and for a certain period after the agreement expires, within a defined geographic area.

However, the definition also includes an important exception: a 'Competing Business' does not include any Bigfoot Forestry Business operated under a valid franchise or license agreement with Bigfoot Forestry or its affiliate. This clarifies that franchisees or affiliated entities operating under the Bigfoot Forestry brand are not considered 'Competing Businesses'. This exception ensures that the franchise system can operate without internal conflicts arising from the definition of 'Competing Business'.

In summary, the definition of 'Competing Business' in the Bigfoot Forestry franchise agreement is designed to protect the brand and the franchise system from direct competition, while also allowing for the operation of multiple Bigfoot Forestry businesses under the same franchise system. Prospective franchisees should carefully review this definition and understand its implications for their business activities, both during and after the term of the franchise agreement.